What Is Bitcoin And Can You Use It In Everyday Life?

With the ongoing hype around cryptocurrencies in recent years, you’ll be hard-pressed to find someone who hasn’t at least heard the term ‘Bitcoin’ or ‘Blockchain. However, while most may have heard of it by this point, it’s safe to say that not everyone is quite as savvy with the definition as others. If you are one of those people, you’re in luck! Below, we’re exploring just what Bitcoin is and how it could potentially be used in everyday life.

IMAGE: PIXABAY

What Is Bitcoin?

Created back in 2009 by an anonymous entity known only as Satoshi Nakamoto, Bitcoin was originally designed to be a peer-to-peer alternative of electronic cash and has since built up a rapport as what’s now known as ‘cryptocurrency’. With key features including unique encryption security and a decentralized network from which it runs, Bitcoin and the blockchain technology it operates on have been hailed as revolutionary to financial markets.

However, there have been some bumps in the road and concerns regarding the volatility of the Bitcoin value but regardless of these concerns, it’s still proving to be the most popular cryptocurrency to date.

Where Can It Be Spent?

Of course, the big question on everyone’s mind is whether Bitcoin can be spent and if it can, what it can be spent on. The answer to that question is a simple ‘anything!’ Bitcoin’s first ever material transaction came in the form of two large Papa John’s pizzas and even the most unexpected of industries have since started to increase their overall acceptance of the cryptocurrency. The likes of Microsoft and Expedia have opened up to accepting bitcoin payments and smaller retailers across the globe are also allowing for payments with these digital coins, so there’s plenty you can do with your bitcoins when you have them. While it isn’t likely to be nearly as common as traditional fiat currencies anytime in the near future, the potential that these digital currencies hold is huge.

Is It Worth Investing?

With that in mind, the question remains as to whether or not it’s worth investing in Bitcoin. Unfortunately, there’s no simple answer to this question but there’s plenty of advice for you to take into account before making the decision for yourself.

The biggest concern that most investors have regarding the cryptocurrency is whether money can still be made. Bitcoin hit its highest in December 2017 when it fell just short of $20,000, but has since fallen to around $8,000 on average. Despite its fall, the potential for another rise is still there, but the risks involved could deter some beginners from trying their hand at investing regardless. However, those with a little more experience could be willing to ride the volatility wave and ultimately make a lot of money while doing so.

But what about the everyday spender? If you have some cash to spare that you’d like to invest in Bitcoin, it could be a worthwhile investment simply due to the potential that it holds. Alternatively, there are other cryptocurrencies available with arguably more affordable prices and more stable markets. This is a matter of personal preference, however, so make sure you do your research into each before making that all-important investing decision!

The future of Bitcoin is one that is difficult to predict but investors, traders and everyday consumers are considering it regardless. With pros and cons associated with the cryptocurrency, understanding just what it is and what you could do with it is always a good place to start, and hopefully, our simple guide has helped you do just that.